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Mercedes Ramping Up To Take Tesla Down — But Can They Really Compete With Elon Musk?

By Patricia Grannum
Published on: 08:21 PST, Nov 12, 2017

Mercedes has its sights on a bigger share of the electric vehicle market and its parent company, Daimler, has quietly been building its EV fleet so that it can compete with Tesla Motors. According to Business Insider, Daimler has invested $11 billion into electrifying its fleet and plans to offer an electric version of every one of its vehicles by the year 2022. They project that at least fifty versions of Mercedes passenger cars will be offered either as fully-electric vehicles or as hybrids.

Tesla Vs Mercedes – Won’t Be An Easy Win For Daimler

Even though Tesla is still considered an “underdog” in the automotive market, it isn’t going to be easy to take them on. As Business Insider notes, loyalty to the brand is high and very similar to the adulation that Apple Inc. receives. A lot of that has to do with admiration for Tesla CEO, Elon Musk. Musk is considered a genius tech disruptor who is committed to fostering a sustainable future. Mercedes/Daimler just doesn’t have that kind of star power.

A charismatic CEO can only get you so far. Tesla has proven its value by upgrading electric cars in a way the world had never witnessed before. For example, they successfully started delivering over-the-air software updates to customers. Also, by selling their cars in Tesla-branded stores, they bucked against the traditional auto dealership model.

But there are some chinks in the Tesla armor. The company has had to deal with a lot of bad news related to their highly anticipated mass-market vehicle, the Model 3. As the Inquisitr previously reported, there have been reports that the company has manufactured less than 500 units of their new vehicle. Furthermore, the cars that have been produced have been delivered to employees only. One of their suppliers has also revealed that the company slashed parts orders for the Model 3 by 40 percent.

The company has claimed that the Model 3 manufacture is plagued by production bottlenecks that are related to automation of the machines that make the vehicle. Tesla recently bought Perbix Machine Company, a firm that specializes in advanced automated manufacturing equipment. Some believe that the purchase was made as part of an overall plan to accelerate Model 3 production.

Who Will Reign Supreme In The EV Market?

As Business Insider notes, Mercedes can beat Tesla by rebranding themselves as the premier EV manufacturer. It won’t be easy, given Tesla’s brand allure in the EV space. But they’ll want to do it quickly since China, the world’s largest auto market, has announced that it will be discontinuing the use of diesel and gas powered cars.

Also, according to Electrek, Tesla has a history of outselling Mercedes. Tesla sold 25,202 Model S sedans in the U.S. in 2015, giving the company a 25 percent market share in the luxury sedan market. In 2017, the Tesla has so far outsold the Mercedes S-Class, Porsche Panamera, and BMW 6/7 Series combined in the US.

Do you think that Mercedes will be able to oust Tesla from its position as top dog in the EV market? Let us know in the comments below.

[Featured Image by Mercedes]

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